THINGS I THINK: Lots of discussion about minimum wage laws lately. One thing about the discussions that really bothers me. Lots of people think that companies expand or contract based on number of employees, market share, federal and state regulations, or even bricks and mortar efficiencies ( a storefront in a bad spot, for example ) I disagree. A company expands or contracts where it sees a demand ( or lack of ) for the services or products it supplies. The wage of an employee is a SMALL metric in the overall pie. In a service industry like mine, where I dont sell any products at all ( opposed to a MCDonalds or a Wal-Mart ) its a larger PIECE of the pie, but generally its just another business expense, and for most retail and production establishments, hardly the largest expense. Businesses in a capitalistic society will resist the rising of ANY of the costs they might incur. Production, wages, energy, taxes, et. al. Heres the Rub. IN ALL THE HISTORICAL METRICS I HAVE EXAMINED the metric of wages is at its LOWEST percentage since I have been alive. Quite simply, the American worker is more dedicated, better educated, and has greater productivity than the one even 10 years ago. Yet, we have a jobless recovery It doesnt take a theoretical physicist to figure this out. Wages need to rise. Its contrary to recent history of the respective sectors of the economy ( bule collar versus service industry for example ) for us to continue to allow the downward pressure ( indexed to inflation or real dollars use whatever index you like ) of wages. Will prices rise? Probably. Dollar for dollar versus increased production capacity? HARDLY. Why a person who works for the man would vote for someone who resists the idea of putting more money into an average 40hour per week worker, is cognitive dissonance. ( or if you prefer, cutting your nose off in spite of your face ) Theres more average 40 hour per week workers than milionaires and poor people put together. If you were crafting societal government, should you not craft a policy that caters to the MOST common denominator? Hello?
Posted on: Sat, 25 Oct 2014 16:39:58 +0000
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